#EURJPY @ 143.032 The formation of selling tails at elevated levels has shifted the cross into a correction mode. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• The formation of selling tails at elevated levels has shifted the cross into a correction mode.
• The 20-EMA at 141.00 will act as a major cushion for the asset.
• Oscillation in a bullish range of 60.00-80.00 by the RSI (14) indicates that the upside bias is intact.

The pair currently trades last at 143.032.

The previous day high was 144.48 while the previous day low was 142.3. The daily 38.2% Fib levels comes at 143.13, expected to provide resistance. Similarly, the daily 61.8% fib level is at 143.65, expected to provide resistance.

The EUR/JPY pair is facing barricades around 143.00 in the Tokyo session after a modest incline from 142.30. On Wednesday, the asset witnessed a steep fall after failing to sustain above the critical resistance of 144.23 despite making multiple attempts. Investors started pouring funds into the Japanese yen on expectation of an intervention in the Fx moves by the Bank of Japan (BOJ).

On a daily scale, the cross has slipped back below the critical resistance of 144.23 plotted horizontally from June 8. The attempts to establish above the aforementioned hurdle are visible. However, the formation of selling tails consecutively this week is indicating that the shared currency bulls have to wait for more for shifting into unchartered territory.

A failure in sustaining above the critical resistance has resulted in a correction, which will conclude after hitting the 20-period Exponential Moving Average (EMA) at 141.00.

Meanwhile, the Relative Strength Index (RSI) (14) is comfortably oscillating in a bullish range of 60.00-80.0, which indicates that an upside bias is intact.

A correction towards the 20-EMA at 141.00 will create a bargain buy for the market participants which will send the cross towards June 8 high at 144.23, followed by Monday’s high at 145.63.

Alternatively, a drop below August 31 low at 138.27 will drag the asset towards August 24 low 135.51 and August 2 low at 133.39.

Technical Levels: Supports and Resistances

EURJPY currently trading at 142.97 at the time of writing. Pair opened at 142.65 and is trading with a change of 0.22 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 139.88, 50 SMA 138.7, 100 SMA @ 138.85 and 200 SMA @ 135.12.

The previous day high was 144.48 while the previous day low was 142.3. The daily 38.2% Fib levels comes at 143.13, expected to provide resistance. Similarly, the daily 61.8% fib level is at 143.65, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 141.8, 140.96, 139.62
• Pivot resistance is noted at 143.99, 145.33, 146.17

[/s2If]
Join Our Telegram Group